Long-range.ppt

How many are comfortable that your internal processes will achieve the vision? Would you agree there would be 100% consensus if we asked ten people in your organization, “What are the business imperatives?” How many believe they are maximizing the time, talent, and money of the organization? Strategy-Aligned Organization Fueled by Innovation and Driven by Balanced Performance Indicators… Focus Creativity Accountable Overview Current observation Changing landscape of performance management Strategic translation Linkage between strategy and measures Case study Applied workshop Balanced Score Cards Are Not Enough… What We Have Learned Malcolm Baldridge National Quality Award Foundation survey: 300 CEOs 72% felt executing strategies was more important Fortune Magazine “Why CEOs fail” 70% failures were flawed execution of strategy What We Do Know Only 5% of the workforce understand the company’s strategy Only 15% of the executive teams spend more than one hour per week discussing strategy Only 25% of the managers have incentives linked to strategy Only 40% of the organizations link budgets to strategy As a result, 30% to 50% of the company’s efforts are off strategy… “white collar waste” The Shift 80% are making PM system changes and 33% described them as major overhaul (Strategic Finance Magazine, 2002) More than 50% of the Fortune 1000 have turned to Balanced Score Card principles (Bain Company study 2001) The Real Question is Why??? Organizational Drifting Changing Landscape “They (knowledge workers) now account for a full third of the American workforce, outnumbering factory workers two to one. In another 20 years, they will make up two-fifths of the workforce of all rich countries.” Peter F. Drucker, The Economists, November 2001 Intangible Assets? Intangibles assets may not have a direct impact on financial results Value is largely potential – must be trans